RULE-102

BALOCHISTAN MINERAL RULES, 2002 BALOCHISTAN MINERAL RULES, 2002 [Gazette of Balochistan, Extraordinary, 9th March, 2002] No. S.O.(MR)4-6/2002, dated 8-1-2002.--In exercise of the powers conferred by section 2, of the Regulation of Mines and Oil-Fields and Mineral Development (Government Control) Act, 1948, (XXIV of 1948) the Government of Balochistan is pleased to make the flowing Rules:-- PART V FINANCIAL 102. Rate of royalties. (1) Subject to this Part, royalty shall be charged on the fair market value of any mineral specified in Part I of the Third Schedule, to which sub-rule (1)(a) or (b) of Rule 101 applies, at the rate specified in Pats II and at flat rates as per detail given in Part III of that Schedule or at such other rate as may be notified by the Government from time to time in the Official Gazette. (2) For the purposes of sub-rule (1), the fair market value of a mineral or group of minerals is - (a) when: the mineral or group of minerals is disposed of in a sale at arm's length, the sale price; (b) where the mineral or group of minerals is not so disposed of, the value established, in relation to the kind of disposal concerned, by reference to criteria for the determination of that value, in the mineral agreement, the mineral title under which or pursuant to which the mineral or group of minerals was won or mined; or (c) where the mineral or group of minerals is not disposed of as provided in paragraph (a) and there are no such criteria as provided in paragraph (b), the amount, determined by the licensing authority, at the date of the disposal, which would, in the opinion of the licensing authority, be paid on international markets or, as the case may be, domestic markets for such mineral or group of minerals in a sale at arm's length by a willing seller to a willing buyer. (3) For the purposes of sub-rule (2), a sale is a sale at arm's length if, but only if, the following conditions are satisfied with respect to the contract of sale, that is to say - (a) the contract price is the sole consideration for the sale: (b) the terms of the sale are not affected by any commercial relationship (other than that created by the contract of sale) between the seller or any other person associated with the seller and the buyer or any person associated with the buyer; and (c) neither the seller nor any person associated with the holder of the mineral title has, directly of indirectly, any interest in the subsequent resale or disposal of the mineral or group of minerals or any product derived therefrom. (4) For the purposes of this Rule, the fair market value, in respect of any mineral or group of minerals which has been disposed of, shall be determined by reference to the first point at which it was disposed of, without allowing for any deductions from the gross amount so determined.